Ohio manufacturing program faces shutdown after federal audit

A federally funded manufacturing program in Ohio faces permanent shutdown following an audit by the U.S. Department of Commerce’s Office of Inspector General. The audit, covering spending from 2017 through 2024, alleges poor oversight of $20.9 million received through the Manufacturing Extension Partnership (MEP).

The report cites waste, abuse, unauthorized spending, and self-dealing by board members of six local affiliates. Specific criticism was directed at the Ohio Department of Development’s oversight, as well as the actions of affiliates such as the Manufacturing Advocacy and Growth Network in Cleveland and the Ohio State University South Centers in Piketon.

The audit recommends that the National Institute of Standards and Technology consider terminating Ohio’s funding permanently and attempting to recoup the funds. In response to preliminary findings, the federal government abruptly paused MEP funding for the state in December, leading to complaints from elected officials and causing several affiliates to announce changes.